Grid Segment

Statutory and regulatory framework in the Grid Segment

In addition to the operational challenges of implementing the Renewable Energy Expansion Act (EAG) package, grid operators are also feeling the effects of the current geopolitical situation and decarbonisation hype. This is reflected, for example, in the Electricity Segment by a further increase in demand for PV systems – on top of the aspects attributable to the incentives from the EAG package.

The statutory environment was stable in the 2021/2022 fiscal year due to the fact that regulatory periods were still in effect until the end of 2022 for gas and until the end of 2023 for electricity. Discussions are underway between E-Control Austria and industry representatives on formulating regulations for the subsequent periods starting in 2023 and 2024. In the Gas Segment, the regulatory authority carried out a comprehensive cost review in the reporting period; the review forms the basis for the distribution grid operator benchmarks and cost path. Encouragingly, the gas division of Netz OÖ GmbH was confirmed as an efficient benchmark leader in the preliminary investigation report. This cost review is scheduled for fiscal year 2022/2023 for the electricity unit.

The grid utilisation fees in the electricity sector increased by between 3.0% and 7.9% as at 1 January 2022. This increase is attributable to high grid loss costs in the wake of rising energy market prices and higher upstream grid costs.

The grid utilisation fees in the gas sector for consumers at grid level 3 rose by 5.5% as of 1 January 2022. There was a substantial increase by 21.6% for end consumers at grid level 2. The reason for the increase was the roll-up of the regulatory parameters for the third regulatory period due to complaints filed by the Austrian Chamber of Commerce and the Federal Chamber of Labour. The procedure for 2020, which was still open, was decided on in the reporting period in line with previous procedures and is expected to be rolled up in future tariffs.

Business development in the Grid Segment

The Grid Segment generated sales revenues of EUR 392.0 million in the reporting period. This represents a moderate increase of 2.9% compared with the previous year’s sales revenues. In fiscal year 2021/2022, the EBIT of the Grid Segment amounted to EUR 45.3 million and was therefore EUR 8.1 million up on the previous year’s operating result of EUR 37.2 million.

The Grid Segment EBIT now also includes the activities of the Metering Services operational unit, which was transferred from Telekom GmbH to Netz OÖ GmbH as part of an organisational change with effect as of 1 October 2021.

In terms of operational activities, the regulatory tariff increase in the electricity and gas sectors had a positive impact on EBIT, while higher upstream grid costs and grid losses reduced earnings.

Electricity and gas grid as the backbone of the Upper Austrian supply infrastructure

Netz OÖ GmbH, as the electricity and gas grid operator of Energie AG, solidified its leading position within the industry by gaining a new certification in fiscal year 2021/2022. Following intensive preparations and an audit phase lasting almost a full month, the company’s information security management systems (ISMS) could be successfully certified to ISO/IEC 27001:2013. Parallel to the requirements of ISO/IEC 27001:2013, all requirements of the Network and Information System Security Act (NISG) were co-audited by a qualified body (QuaSte), with the NISG audit report expected early in the 2022/2023 fiscal year.

Electricity grid distribution volume to end customers

in GWh

Compared to the same period of the previous year, the electricity grid distribution volume fell by a total of 1.4% from 8,231 GWh to 8,118 GWh in the fiscal year 2021/2022. This decrease in volumes is mainly attributable to the commercial and residential customer sector, which fell in the second half of the fiscal year in particular. Volumes in the industrial customer segment also decreased slightly in the reporting period. As of 30 September 2022, the electricity sector of the Grid Segment supplied approx. 522,000 active customer installations (previous year: 517,000).

A sequence of several hurricane lows in February 2022 posed a challenge for grid operations. It was not only the individual events themselves, but the number of consecutive events in this period of time that placed a strain on the response teams. In this situation, the 110 kV high-voltage grid once again proved to be the strong and reliable backbone of the Upper Austrian electricity supply.

In the 2021/2022 fiscal year, grid activities focused on both grid upgrade and expansion measures to maintain and secure a stable electricity supply, and on the consistent implementation of the “Electricity Grid Master Plan Upper Austria 2028” (Stromnetz-Masterplan Oberösterreich 2028). This meant that the “Power Supply Pramtal South” projects, and the substations Hörsching, Ohlsdorf and Kronstorf West were completed or commenced operations. Work on the environmental impact statement began, following the decision to introduce a mandatory EIA for the “Electricity Supply Mühlviertel” project.

Replacing of overhead power line sections of the medium and low-voltage grid with underground cable was continued wherever expedient. Just less than 10 kilometres of medium-voltage overhead power line were replaced by underground cables in the reporting period.

The very large number of grid connection applications for decentralised electricity generation systems or, more specifically, for photovoltaic systems since the beginning of calendar year 2022 was highly challenging. The number of applications is a multiple of the previous year’s figure. It proved impossible to provide 100% of the required grid capacity – it will be necessary to create this capacity through additional low- and medium-voltage grid construction work. The installed capacity from photovoltaics is around 589 MW (previous year: 396 MW) with around 39,300 connected systems (previous year: 30,100 systems).

Gas grid distribution volume to end customers

in GWh

The gas volume transported for end customers in the Group’s own grid increased by 1.1% to 19,592 GWh year-on-year in the 2021/2022 fiscal year (previous year 19,379 GWh). This development was largely the result of higher volumes delivered to industry and power plants, while volumes in the household and commercial sectors declined.

The number of customers declined in the past fiscal year. The causes are assumed to be trends in society, political requirements, especially relating to environmental protection, and uncertainties relating to sufficient availability of gas.

To ensure reliable operation of the gas grid, extensive upgrades were carried out at the RS 149 Bad Ischl throttling station on top of scheduled grid expansion. Three high-pressure gas pipelines with a total length of 36.9 km were investigated using smart pigging. Various repairs to high-pressure pipelines were carried out in the reporting period.